Optrontec (KOSPI: 082210), a South Korean manufacturer of optical components, is expected to swing back to an annual operating profit in 2026, according to an analysis published by SK Securities.
The brokerage forecasts revenues of 228.7bn won for the full year, up 17% on 2025, with an operating profit of 14bn won, implying a margin of 6%. The return to profitability is already under way: first-quarter operating profit came in at 4.4bn won, equivalent to a 7% margin.
Optrontec makes optical filters for cameras, optical image stabilisers (OIS) and lenses. In 2025, OIS accounted for 55% of revenues, optical filters 30% and lenses the remaining 15%.
SK Securities cites three drivers behind the turnaround. First, the OIS business is expanding. Mass production of conventional OIS modules has begun, following earlier success with folded-zoom OIS, and the exit of some rivals is allowing Optrontec to absorb redistributed order volumes. Second, a new automated production line came online at the end of the first quarter; revenues attributed to it are projected to grow from 15bn won this year to 75bn won in 2027. Third, demand for upgraded optical filters is rising. Filters are typically replaced ahead of image sensors when smartphone cameras are upgraded, giving Optrontec an early share of any refresh cycle.
The competitive landscape for optical filters is also shifting in the company's favour. One domestic rival was acquired by a back-end semiconductor services firm and has since curtailed its filter supply; another has reduced its research and development team to a skeleton staff. "Optrontec is now the only domestic vendor capable of developing new filters," SK Securities said.
Looking further ahead, the brokerage expects revenues of 263bn won in 2027, up 15%, with operating profit reaching 23.7bn won and the margin widening to 9%. Capital expenditure is forecast to fall sharply, from 35bn won in 2026 to 13bn won in 2027, which should ease the pressure from borrowings.
Risks remain, however. The company carries a substantial debt load, and the overhang from potential share issuance is a concern. Broader uncertainty over global smartphone shipments also clouds the outlook. Optrontec's shares were trading at 1,514 won as of 3rd July, giving it a market capitalisation of roughly 53bn won.